Tax deductions for investments in energy efficiency and renewable energy- Federal

Country	Belgium
Year Implemented	2003
Policy Status	In force
Date Effective	1 January 2003
Agency	•Federal Public Service of Finance
Funding	FY 2003: EUR 37 million
Policy Supersedes	Fiscal deduction to promote energy efficiency
Policy Type	•Financial   •Taxes and Tax Incentives     •Tax Reduction
Policy Target	•Solar Photovoltaic •Solar Thermal   •Water Heating
Policy Sector	•Multi-sectoral Policy
Size of Plant Targeted	Small
Description	Since January 2003, the Federal Public Service (FPS) of Belgium offers tax reductions for individuals undertaking energy efficiency and certain renewable energy investments in their homes. As of January 2005, renters can also apply for the tax reductions. Tax reductions are offered when undertaking one or more of the following 8 measures: 1-Replacement or maintenance of water heating systems, with new heaters meeting minimum efficiency requirements (reductions amounted to 15% of investment in the first year, up to 40% in the following years); 2-Installation of a solar water heating system; 3-Installation of solar photovoltaic panels for electricity production, with installed system meeting certain efficiency requirements; 4-Installation of geothermal heat pump (since 2004); 5-Installation of double glazed windows meeting minimum efficiency standards (U value); 6-Roof insulation, meeting minimum efficiency standards (R value); 7-Installation of thermostatic valves or regulated thermostats (reductions are offered for the installation of one of the systems where the other is already present, or for the installation of both together if neither are present) 8-Undertaking an energy audit Tax reduction maximum amounts have progressively increased, and for the 2008 fiscal year (for expenses incurred in 2007) the tax reduction amounts to 40% of the expense, up to a maximum amount of EUR 2600 per household, whether for new construction or renovation. For the installation of solar photovoltaic panels, the maximum amount is EUR 3380. In addition, following investment the homeowner pays fewer municipal taxes, resulting in average savings of EUR 225.
URL	fiscus.fgov.be/interfaoiffr/Vragen/energysaving/index.htm www.minfin.fgov.be/
Legal References	Law concerning the economic recovery of 27 March 2009|Royal Decree of 17 july 2009|Art. 33 de la loi du 10 août 2001|Arrêté royal du 20 décembre 2002|Loi programme du 5 août 2003 (articles 15 et 16)|Arrêté royal du 23 juin 2004|Loi du 31 juillet 2004